Gold and silver were mostly steady overnight, holding within or near yesterday's ranges, as the market grew cautious ahead of the ECB meeting today and the monthly US jobs data tomorrow. If the ECB cuts its growth forecast and signals fresh stimulus, it could pressure gold and silver.
However, we may not see much of a move in the market until the jobs data is released Friday morning. A strong number would likely support the dollar and pressure the metals, while a weak number could pressure the dollar and provide a boost to the metals.
On Wednesday, the OECD cut its global economic forecasts for 2019 and 2020 again. They cut the 2019 growth rate to 3.3 percent from 3.5 percent and the 2020 rate to 3.4 percent from 3.5 percent.
On a positive demand note, gold imports by India climbed for the second straight month in February due to jewelry purchases for wedding season. Purchases were up 5.5 percent from February 2018. The report cited an increase in rural demand due to farm price supports and other measures taken to boost incomes.
The Peoples' Bank of China reported China's gold reserves rising for the third straight month in February, reaching 60.26 million fine troy ounces from 59.94 million at the end of January.
Gold and silver could be vulnerable to short covering if the jobs data is disappointing. However, if a trade deal between the US and China gets done, it could send the metals on another leg down.
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Non-Reliance and Risk Disclosure: The opinions expressed here are for general information purposes only and should not be construed as trade recommendations, nor a solicitation of an offer to buy or sell any precious metals product. The material presented is based on information that we consider reliable, but we do not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. Opinions expressed are current as of the time of posting and only represent the views of the author and not those of Zaner Financial Services LLC, unless otherwise expressly noted.
